The New Price of Luxury: $40 Million

April 24, 2015 8:47 AM

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How a once unthinkable sum became a standard asking price for high-end real estate.

Jeff Keil paid $2.3 million in 1991 for his townhouse on the Brooklyn Heights Promenade in New York. When he put the roughly 17,500-square-foot house on the market a few months ago, he listed it for $40 million.

A little over the top for my taste. the issue is hear is that the article says that the demand is being fueled by overseas folks wishing to purchase hard assets. We are worried about money laundering and try to shut down all avenues but real estates remains untouched. Is people were forced to declare where the $40 million came from before buying a have to assume these prices would drop to more realistic areas.In Miami for example their is so much money pouring in to real estate from South America, Russia etc. Does the IRS go after and look at this. Hardly, if so they are doing a poor job. It is easy just set up and off shore company dilute the money trail by moving it through many other conduits before reaching the company that will make the investment. Get good lawyers and wallah clean. Probably the cheapest way to do it even if you have to pay inflated prices. Your in the USA!I bet a lot of Petrobras cash can be found in the skyline of Miami.

Atlanta is ruining Georgia... it won't be long before those urbanites start discovering the rest of the state and buy up our land and make prices go up even more than they already have over the past century.

A 12.5% return each year over 24 years is what I would call "housing bubble". There's a huge bubble out there. Whatever is driving these numbers, likely the over inflated stock market, will pop, and so will these prices.

This is great news for the state of California...real estate taxes are 1.25% of most recent selling price (older buyers have a minimal percentage added every year...something like the cost of living?)...these buyers are, in many cases, increasing taxes collected from $10000 to $500000 in a single year!